Boeing has reportedly agreed to plead guilty to criminal fraud charges related to the fatal 737 Max crashes, a move that will brand the aerospace giant as a felon but allow it to avoid a trial. The company is likely to face of fine of $243 million — a drop in the bucket compared to its $78 billion in annual revenue, which a victims’ lawyer calls a “sweetheart deal.”
CNBC reports that aerospace giant Boeing has reached an agreement with the Justice Department to plead guilty to criminal fraud charges stemming from the fatal 737 Max crashes. This plea deal, unveiled late Sunday, comes as Boeing attempts to move past its safety and manufacturing crises. The agreement, which is subject to approval by a federal judge, outlines several key provisions that will significantly impact the company’s operations and reputation.
Under the terms of the deal, Boeing faces a potential fine of up to $487.2 million. However, the Justice Department has recommended that the court credit Boeing $243.6 million, which the company had previously paid under a 2021 settlement. This adjustment would effectively reduce the new fine to $243.6 million. The plea agreement also stipulates that Boeing must invest at least $455 million in compliance and safety programs, highlighting the government’s emphasis on preventing future safety lapses.
One of the most notable aspects of the deal is the installation of an independent compliance monitor who will oversee Boeing’s operations for three years during a probationary period. This measure is designed to ensure that the company adheres to strict safety and regulatory standards moving forward. Additionally, Boeing’s board of directors has agreed to meet with family members of the crash victims, a step towards acknowledging the human cost of the company’s failures.
The criminal fraud charges are related to Boeing’s misleading of regulators about the inclusion of a flight-control system on the 737 Max, which was implicated in two devastating crashes. These incidents – a Lion Air flight in October 2018 and an Ethiopian Airlines flight in March 2019 – resulted in the deaths of 346 people. The plea deal comes after U.S. prosecutors stated in May that Boeing had violated a 2021 settlement, which had initially shielded the company from prosecution for three years.
This agreement could have far-reaching consequences for Boeing’s business operations. As a felon, the company may face complications in selling products to the U.S. government, although it could potentially seek waivers. This is particularly significant given that approximately 32 percent of Boeing’s nearly $78 billion revenue in the previous year came from its defense, space, and security unit.
The agreement has faced criticism from some, with lawyers representing victims’ family members describing it as a “sweetheart deal.” Paul Cassell, an attorney for the families, has expressed his intention to ask the federal judge to reject the deal and instead set the matter for a public trial. This sentiment reflects a desire for greater transparency and accountability in the case.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
